The gamecock. (Columbia, S.C.) 1908-2006, February 09, 2000, Page A9, Image 9
_EtCetera_
Buying a car a tough choice for students
Recent college graduates and first-time
buyers can take advantage of special
rebates and discounts
by Rebecca Cronican
ETCETERA EDITOR
Buying a car is more than a big decision for college
students and recent graduates - it’s several big decisions.
Is it better to buy or lease? Is new better than used?
What’s a reasonable price?
And with the bills stacking up for rent, utilities, in
surance and everything else, new graduates and college
students have to know what they’re getting into to make
sure they get the best deal on a car.
Some students think they don’t have enough mon
ey for a car, but dealers say there are plenty of options
to make cars affordable on a tight budget.
Jennifer Rainman, a geography senior, said, “I’d love
to buy a new car, but I know I won’t have enough mon
ey, and I feel like I would waste a lot of money leasing
a car.”
Keith Hudson, general manager of Jim Hudson Pon
tiac GMC Suzuki Explorer, said it’s important to keep
a budget in mind and be realistic. Most recent graduates
don’t have the money to buy a $40,000 vehicle for their
first car.
He encourages leasing, as does Pat Johnson, senior
sales representative at Galeana Chrysler Plymouth Jeep
Kia.
“You can lease more car for less of a monthly pay
ment,” Johnson said.
Standard leasing programs are for three years. At the
end of the three years, the car is returned and a new one
can be leased, starting the cycle again. Monthly pay
ments stay the same.
According to Hudson, the benefits of leasing are that
. the car stays under warranty, and every three years, the
car gets replaced with a new model, which means bet
ter technology and, probably, more style. Also, the bank
assumes the depreciation on the car.
As with everything, there are drawbacks to leas
ing.
Leased cars have mileage limits.
With a standard three-year lease, the limit is 36,000
miles, or 12,000 a year.
Under that program, the driver must pay a penalty
of 15 cents for every mile over the limit at the end of
the three years, Johnson said.
Extra miles can be bought in advance, so the
penalty is not inevitable, though the added expense of
buying the miles ahead of time must be considered when
figuring a budget, and it also requires planning.
Another drawback is that the car is never really yours.
“When you do a lease, you don’t truly own the car,”
Hudson said.
For those who do want to actually own a vehicle,
the options are buying new, used or program vehicles.
Used cars are cheaper, but they don’t come with a
full factory warranty, and there’s no way to know the
service history.
If the dealership is reputable, it will inspect used
cars before reselling them to ensure that the car is in
good condition.
“We have a mechanic that’ll completely go over the
vehicles,” but it’s still impossible to see everything,
Johnson said. Some say buying a used car is like buy
ing someone else’s problems, but Galeana tries to avoid
that with a 100-point inspection and by guaranteeing
their used cars.
Program vehicles are those that have been owned
by a rental fleet.
They aren’t necessarily better than used, Johnson
said, but they usually have 20,000 to 25,000 miles on
them, compared with 50,000 to 70,000 on trade-ins.
The miles put on rentals are mostly highway miles,
which wear the car less than miles put on the car in
the city, where traffic is stop and go.
Also, program cars are typically still under factory
warranty when they’re sold.
Most dealerships have discounts or rebates for col
lege graduates and first-time buyers. Jim Hudson and
Galeana give a $400 rebate on select models to college
graduates from six
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ation to two years
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There’s not a cer
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put higher incentives on cars from the last model year.
That usually is in August or September, Johnson said.
Both Johnson and Hudson emphasize, however, that
no time really is better than another for buying a car.
“Someone who knows haw to shop for a car - they’re
going to get the best price,” Johnson said.
There are several options available for financing a
car that will keep payments within a reasonable budget,
Johnson said.
Galeana has a program where a leased car has low
er-than-normal monthly payments, followed by one big
balloon payment in the final month of the lease peri
od.
That gives the consumer time to save money.
Many dealerships have similar programs.
Wheri buying a car, the lender determines how much
money is put down.
Some lenders want to see 10 percent to 15 percent
cash down on the price of the vehicle, Johnson said.
The final figure, though, depends on the interest rate,
•“which is affected by credit history.
For someone who hasn’t built a solid credit history
but doesn’t have credit problems, a bank might ask for
no less than 10 percent down on a vehicle that costs
no more than $15,000, Hudson said.
For those with bad credit, each case is unique.
Buying a car loses some of its constraints when a se
cure job immediately follows graduation.
Scott Landry, a computer engineer who was gradu
ated from USC in May, works for Microsoft now and
just ordered a new
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His deal is no
ordinary deal,
however, as
Landry will fly to
Sweden, where
the car is made, to
drive the car while
on vacation in Eu
rone.
At the end of his trip, he’ll return the car to a spec
ified port city, where the car will be shipped to him in
Charlotte.
“The program is great, because I get to order the ex
act car that I want. On top of that, I get a free trip to
Europe, where I can drive the car,” Landry said.
Until April 15; buyers can participate in Volvo’s pro
gram and receive a free round-trip plane ticket from one
of 22 major U.S. cities to one of 27 European destina
tions. And, of course, the new car provides transporta
tion in Europe.
For the most part, though, buying a car is a domes
tic endeavor.
Johnson advises having a clear idea of what you’re
looking for and doing plenty of research, which is easy
with the Internet. Knowing what to expect will make
negotiations easier.
“.You just have to know what you want,” Johnson
said.
Td love to buy a new car, but I know I won t have
enough money, and I feel like I would waste a lot
of money leasing a car.’
Jennifer Rainman
geography senior
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